PepsiCo to raise prices on some chips in the US — Cyprus Mail

PepsiCo plans to raise prices on some chips in the United States to keep pace with inflation. The maker of Lay’s is seeking to revive sales in the US market. Cyprus Mail reports, citing Reuters.

An increase of several percent

A PepsiCo spokesperson told Reuters that prices for some chip brands will rise by several percent, in line with inflation. At the same time, after the increase, they will still be lower than before the price cuts earlier this year. According to the spokesperson, the company is trying to maintain lower prices where possible.

In February, PepsiCo cut prices by up to 15% on selected products, including Lay’s and Doritos, after customers expressed dissatisfaction with several previous rounds of price increases. Bloomberg, which first reported the new changes citing people familiar with the matter, said that prices for Doritos and Ruffles bags sold in grocery stores, as well as for some soft drinks, could rise by the end of the year or in early 2027.

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Pressure on sales and costs

The company is facing changing consumer preferences toward healthier snacks and weaker demand from households affected by higher fuel prices. PepsiCo has also warned of rising raw material costs in the second half of the year.

In its latest quarterly report, PepsiCo said sales in its North American food division fell 2% in the second quarter, while maintaining its annual forecast. In July, the company also said that high gasoline prices had weakened consumer demand more than it expected. Sales volumes in PepsiCo’s North American business have been declining since the start of the year despite price cuts and CEO Ramon Laguarta’s intention to review the region’s supply chain.

Activist investor Elliott Investment Management, which last year disclosed a stake in PepsiCo worth about $4 billion, urged the company to reinvigorate its soft drinks business, increase shareholder value and consider selling non-core food assets. Since the start of the year, PepsiCo shares have lost nearly 10% of their value, falling by about another 1% in morning trading.